Karl Hopkins
On Thursday 5th February 2009 the Bank of England brought the base rate down to an all-time low of just 1 per cent.
Landlords with interest only and tracker mortgage arrangements stand to benefit from the cut. And with some analysts predicted the bank rate may come down further, fixed rate loans are looking distinctly unattractive.
"While borrowers on tracker rates will welcome the rate cut, it is doubtful whether it will create the conditions to achieve significantly more new lending", said CML director general Michael Coogan.
"It will not be a surprise if banks and building societies try to prioritise savers in this very low interest rate environment. For borrowers who remain in employment, affordability is unlikely to be an issue at the moment.
"But, if the rate cut helps businesses, and therefore helps to keep people employed, this will at least help to cushion the impact of the recession on the housing and mortgage markets. In practice, rate cuts alone will not achieve this objective as they have become a more blunt instrument - they are only one of the tools being used to try to help the UK weather the recession."
For the Royal Institution of Chartered Surveyors, chief economist Simon Rubinsohn said the cut "may provide a small boost to the current weak levels of confidence in the economic outlook, but this decision urgently needs to be supported by other measures.
There is still a real need to stabilise the economy and increase the supply of mortgage finance to ensure an orderly housing market. The various measures announced by the government should go some way to achieving this providing they are introduced as quickly as possible."
Head of residential investment at Jones Lang LaSalle, James Thomas, said employment was now a key factor in determining homebuyer sentiment.
"Rising unemployment is stifling demand and we expect more house price falls in 2009. The main things to watch for in terms of stabilization in the market will be an unfreezing of the mortgage market and an improvement in the jobs market. Neither of these is likely any time soon. In the meantime, trading volumes will remain thin, though shrewd investors may be able to take advantage of current conditions and pick up bargains from distressed sellers."
* Leading repossessions specialists Moore Blatch has warned residential landlords that they risk becoming 'unmortgagable' if they declare themselves bankrupt in 2009.
The company says it is increasingly seeing repossessions that have been compounded by a cavalier attitude towards credit with the popular misconception that it can all be written off through bankruptcy or IVAs.
However, Moore Blatch explains that the mortgage market for bankrupts has changed significantly, and the pre-credit crunch environment, where those individuals who had been declared bankrupt could easily secure a sub-prime mortgage, has changed.
According to mortgage data provider, Trigold, in January 2007 there were fifty six thousand mortgages available for people who had been declared bankrupt - in the two years since, this has dropped by an alarming 2,557 per cent.
Moore Blatch envisages that finding a mortgage at a reasonable interest rate is likely to be difficult for up to a decade and is advising that bankruptcy should be the very last resort.
Paul Walshe, head of lending services at Moore Blatch, said: "Although bankruptcy does not automatically signal that you are unmortgageable, it does leave a very visible scar on your credit history.
"Up until the credit crunch it was possible to find lenders that would provide mortgages to bankruptees, and this led to a popular misconception that you could borrow and forget about paying it back with no long-term consequences."
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
This and much more information for landlords, can be found at Residentiallandlord.co.uk. Other features include; document downloads including an assured shorthold tenancy agreement, buy to let mortgages and rates, landlords insurance suppliers, residential auctions and much more besides.
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Showing posts with label Investors. Show all posts
Showing posts with label Investors. Show all posts
26.7.09
6 Tips for Beginning HYIP Investors
Chris Sandberg
Beginner investing can be very difficult and since folly here can cost you a great deal, it's nice to have a little hard earned experience handed to you to help you along your way. And since this information is free, if you review and apply the following guidelines I lay before you, it may just be the best investment you ever make.
HYIP's or High Yield Investment Programs are one of the latest internet investment schemes that are gaining a lot of global attention not only for the return on investment that they promise to give, but also because of the number of individuals who are losing there wallets by placing there trust in such programs.
HYIP's by nature are known to have a higher percentage of investment risk, but also a dramatically larger percentage of yield. In the last few years they have become more known as "ponzi schemes".
Ponzi schemes typically involve promises of abnormally high returns to investors in a short period of time. The first investors enrolled into the program are the first to profit and do so by the funds invested by subsequent investors. Eventually the whole scheme collapses or falls in on itself leaving the majority of its investor's deficient the principal amount they invested.
The online community has produced several forums and monitors to help protect investors who choose to pursue this high risk form of investing. You can quickly check the current status of a desired program and read comments or reviews to. You can also be notified on a day by day basis as to whether or not the program is still paying out to its investors.
Some hard earned practical tips and guidelines for beginner investing are as follows;
1. The number one rule to HYIP investing is to only invest in what you can afford to loose. The chances of you loosing your investment are very likely if you don't carefully follow the following steps.
2. Diversify! We have all heard this before. Do not put all your eggs into one basket. If you are hoping to invest five thousand dollars than you might want to consider investing $1000 into five different programs or $500 into ten different programs. Don't loose it all in one place.
3. When looking for High Yield investment programs, make sure there is legitimate contact information on the website allowing you to contact the program's administrator if you have any questions after investing. You would be shocked to know that a large percentage of investors don't even have a method of contact other than an email address.
You should always test the email address to validate that it is an active address as well as to test the response time of there customer service.
If there is a phone number present, test it as well and make sure that it is an active line. Do you get a live person on the phone when you call?, or is it always a message box telling you they will contact you back? This can be a strong indicator of a small basement ran scam trying to take your money. Scammers know that many will check for a phone number but not call it until their promised returns don't show up in their account.
Don't be so foolish, due diligence will save you more money than anything else in the arena of HYIP investing.
4. Check the life of the HYIP of interest. How long has it been around? Here you don't want to invest into a program that is to new as it has yet to be proven. You also don't want to invest in one that is to old as it may be about to crash considering most HYIP last less that a year's period of time.
5. Percentage of return should also be considered as well as the old adage "If it's too good to be true than it usually is". The smallest promised gains in the HYIP world return about 1% daily, which gives you a higher yield than just about anything else you could invest in. The key here is not to get greedy. The higher the promised yield the greater the risk.
6. Lastly, don't let emotion get in the way. Study your interests, define a plan and stick to it. Emotional investing will get you no where!
If you're a beginner on investing in HYIP's, these tips should help you greatly as they are all hard lessons to learn by yourself. Do yourself a favor, employ the tips above, dramatically reduce your risk and lastly of course, make some money!
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Chris is a writer for http://getrichinvesting.com, where he gives tips investing in rental property.
Read more....
Beginner investing can be very difficult and since folly here can cost you a great deal, it's nice to have a little hard earned experience handed to you to help you along your way. And since this information is free, if you review and apply the following guidelines I lay before you, it may just be the best investment you ever make.
HYIP's or High Yield Investment Programs are one of the latest internet investment schemes that are gaining a lot of global attention not only for the return on investment that they promise to give, but also because of the number of individuals who are losing there wallets by placing there trust in such programs.
HYIP's by nature are known to have a higher percentage of investment risk, but also a dramatically larger percentage of yield. In the last few years they have become more known as "ponzi schemes".
Ponzi schemes typically involve promises of abnormally high returns to investors in a short period of time. The first investors enrolled into the program are the first to profit and do so by the funds invested by subsequent investors. Eventually the whole scheme collapses or falls in on itself leaving the majority of its investor's deficient the principal amount they invested.
The online community has produced several forums and monitors to help protect investors who choose to pursue this high risk form of investing. You can quickly check the current status of a desired program and read comments or reviews to. You can also be notified on a day by day basis as to whether or not the program is still paying out to its investors.
Some hard earned practical tips and guidelines for beginner investing are as follows;
1. The number one rule to HYIP investing is to only invest in what you can afford to loose. The chances of you loosing your investment are very likely if you don't carefully follow the following steps.
2. Diversify! We have all heard this before. Do not put all your eggs into one basket. If you are hoping to invest five thousand dollars than you might want to consider investing $1000 into five different programs or $500 into ten different programs. Don't loose it all in one place.
3. When looking for High Yield investment programs, make sure there is legitimate contact information on the website allowing you to contact the program's administrator if you have any questions after investing. You would be shocked to know that a large percentage of investors don't even have a method of contact other than an email address.
You should always test the email address to validate that it is an active address as well as to test the response time of there customer service.
If there is a phone number present, test it as well and make sure that it is an active line. Do you get a live person on the phone when you call?, or is it always a message box telling you they will contact you back? This can be a strong indicator of a small basement ran scam trying to take your money. Scammers know that many will check for a phone number but not call it until their promised returns don't show up in their account.
Don't be so foolish, due diligence will save you more money than anything else in the arena of HYIP investing.
4. Check the life of the HYIP of interest. How long has it been around? Here you don't want to invest into a program that is to new as it has yet to be proven. You also don't want to invest in one that is to old as it may be about to crash considering most HYIP last less that a year's period of time.
5. Percentage of return should also be considered as well as the old adage "If it's too good to be true than it usually is". The smallest promised gains in the HYIP world return about 1% daily, which gives you a higher yield than just about anything else you could invest in. The key here is not to get greedy. The higher the promised yield the greater the risk.
6. Lastly, don't let emotion get in the way. Study your interests, define a plan and stick to it. Emotional investing will get you no where!
If you're a beginner on investing in HYIP's, these tips should help you greatly as they are all hard lessons to learn by yourself. Do yourself a favor, employ the tips above, dramatically reduce your risk and lastly of course, make some money!
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Chris is a writer for http://getrichinvesting.com, where he gives tips investing in rental property.
Read more....
